Tag: "dow jones"

03/13/20

  07:39:00 am, by Jim Jenal - Founder & CEO   , 436 words  
Categories: All About Solar Power, Solar Economics, Residential Solar, Ranting

Stock Market Scary? Time to Invest in Solar!

The other day we had a potential client postpone a meeting to discuss our proposal for their home due to “market instability."  To say that the market has been unstable is a major understatement, but that got us wondering: in uncertain times, doesn’t investing in solar make sense?  We sure think so - hear me out…

Unstable Times

Market crashing

Instability? Oh yeah!

The worldwide pandemic caused by the novel coronavirus (COVID-19) has induced travel bans, the cancellation of sporting events (MLB, NBA, March Madness, even NASCAR!) and social events (for once the show isn’t going on on Broadway!), and possibly even postponing some Presidential primaries, combined with a sudden drop in oil prices due to feuding between Saudi Arabia and Russian, has done a serious number on the stock market.  In the past 30 days, the Dow Jones has lost 21% of its value (and it would have been far worse but for a close of the week rally).

Instability indeed!

It is certainly reasonable for any investor to be concerned by such numbers, especially when a wild card - like a global pandemic - is the driving factor.  Hard to plan for such an event, yet it can have enormous impact on the economy, at least in the short term.

The Stability of Solar

But now consider what makes installing solar on your home or business such an attractive investment.  Modern equipment, like Enphase microinverters and LG solar panels, come with 25-year warranties, providing peace of mind. And no matter what happens – short of the zombie apocalypse – you are going to continue to need electricity to power your life, and that need is likely to only increase over time (think of your electricity usage twenty years ago compared to today).  Electric utilities, especially the Investor-Owned Utilities like SCE, clearly do not have your personal best interests at heart, and their rates will continue to increase, even as service declines.

Which means that installing solar provides you with a reliable asset that will reduce your out-of-pocket costs for the next 20 years!  We typically see payback periods that range from 5 to 10 years, with a 20 year ROI of 150%+ and IRR of 12-20% (though our largest residential client in SCE territory is looking at an eye-popping ROI of 460% and an IRR of 28%!).

Of course, your mileage may vary.  But it is hard to imagine a scenario where the value of your solar investment drops 21% in a matter of days - but easy to do so for your 401k - because it just did!

If you would like to diversify your portfolio into a less risky investment, give us a call.  We can help you trade up to solar!

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09/25/12

  11:30:00 am, by Jim Jenal - Founder & CEO   , 274 words  
Categories: All About Solar Power, SEIA, Commercial Solar

Solar Means Business!

We have written before about the types of companies that choose to install solar and we featured the specific strides that IKEA is making toward energy independence. But now comes a report from the Solar Energy Industry Association (SEIA) and Vote Solar that shows that when it comes to saving money, solar really does mean business!

Top twenty companies for installed solar capacityAs the above chart shows, these twenty companies have installed more than 700 solar power systems with a combined total capacity of 279 MW, or enough to power more than 46,000 typical American households!  Retail giant Walmart leads the way with 65 MW of installed capacity, followed by Costco, Kohl’s, IKEA and Macy’s.

Indeed, the report shows that IKEA has installed solar at 79% of its stores, exceeding by mid-2012 the goal that it had set for 2015!

What is motivating these companies to adopt solar at such an impressive - and accelerating - pace?  Well, it certainly isn’t green-eyed environmentalism nearly as much as it is far-sighted economics.  These companies have figured out that solar power systems are a great money maker - with paybacks occurring in 4-7 years and decades of savings thereafter.

The good news is that your company doesn’t have to be a giant in the field to save money like one.  Commercial solar is simply the smartest investment any company could make, and when combined with PACE financing (at least here in Los Angeles County) you can have all of the benefits of commercial solar with next to nothing out-of-pocket.

So what are you waiting for?  Give us a call or click on that giant “Go Solar Now” button on the right to get you started on the road to some major savings!

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Jim Jenal is the Founder & CEO of Run on Sun, Pasadena's premier installer and integrator of top-of-the-line solar power installations.
Run on Sun also offers solar consulting services, working with consumers, utilities, and municipalities to help them make solar power affordable and reliable.

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